Richmond Capital, which managed €350 (US$524 million) before last month, was battered during the first month of the year, one of the worst in the history of the hedge fund industry, with the average fund falling by about 2%.

The Wall Street Journal first reported the disaster at Richmond, founded three years ago by Egerton Capital veteran Luca Bechis.

The concentrated long/short fund was flat last year after posting double-digit gains in its first two years.